Personal Taxes

, , ,

A Dubious Privilege

, , ,

The "Occupy Wall Street" movement argues that we live in a divided nation. First there's a gilded "1%" enjoying lives of ease and privilege. Then there's a downtrodden "99%" struggling just to stay in place. But here's a take on "the 1%" that you won't hear at your local tent city . . .

The IRS is struggling just like the rest of us to carry out its mission with limited resources. Back in 2003, they audited just one out of every 203 returns. By 2010, that number was up to one out of 90. To stretch that audit budget even further, they're auditing more and more taxpayers by mail. But one study shows that 10% of IRS mail never gets where it's supposed to go, and 27% of those who do get their mail don't even realize they're actually being audited! Naturally, that leads to more and more of the paperwork screw ups that every taxpayer fears.

, , ,

England's Tax-Subsidized Style

, , ,

England's creative class is known throughout the world for the richness and variety of its work. Some is good (think Savile Row tailoring and the architecture of Sir Christopher Wren). Some is not (Princess Eugenie's royal wedding hat). And some is just sublime (the 1961 Jaguar E-type). But there's one art form the English are better at than anyone else, and that's highbrow television.

It all started with Upstairs Downstairs. Next came 1981's lavish Brideshead Revisited. And now there's yet another snooty television "programme" invading American hearts and minds — Downton Abbey, a period drama centered on the aristocratic Crawley family and their servants, during the reign of King George V.

Yes, it's a soap opera. But oh, what a soap opera it is. You have your standard-issue improbable plot complications and ill-advised romances, naturally. But it's set against a backdrop of class, manners, and humanity that seem long lost a century later. And where else will you find a soap with

,

And the Oscar Goes To . . .

,

Sunday night, the Academy of Motion Picture Arts and Sciences put "Oscar" on a diet, cutting out live performances for "Best Original Song" nominees and trimming the traditionally bloated and self-indulgent awards program to just over three hours. Movies about movies were the big winners. "Hugo," Martin Scorsese's homage to French director Georges Melies, took five awards early in the evening. And "The Actor," a black-and-white silent film celebrating Hollywood history, took home five more, including the coveted "Best Picture."

Host Billy Crystal managed to sneak in a joke about taxes during the broadcast — he remarked that the "Harry Potter" movies had grossed over seven billion dollars in worldwide receipts but paid just 14% in taxes! (Apparently that "taxium minimoso" spell is a real winner! It also helps if you can keep your bank records in disappearing ink.) But while the tax man rarely gets a star turn on stage, he still manages to clean up at awards time.

, , ,

Tax Detectives... on the Case

, , ,

The IRS is busy playing detective! But are they building cases, clue by meticulous clue, like the super sleuths of television's CSI? Or are they falling on their faces like the bumbling Inspector Clouseau?

 

Last month, a federal judge gave the IRS permission to serve a "John Doe" summons on the California Board of Equalization, demanding names of residents who transferred real estate to children or grandchildren for little or no consideration. The IRS sought the names as part of a nationwide effort to find taxpayers who transfer property to relatives without filing gift tax returns. (The IRS had already rounded up information from Connecticut, Florida, Hawaii, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, Washington state and Wisconsin — but California officials objected that state law prohibited them from ratting out residents without court approval.)

, ,

IRS Hits Homer, Too!

, ,

Last Saturday, New York Yankees shortstop Derek Jeter became the 28th major leaguer — and only the first Yankee — to achieve 3,000 career hits. Jeter's third inning solo home run to left field wound up in the hands of a 23-year-old fan named Christian Lopez. Souvenir baseballs are big business, so team officials immediately whisked Lopez out of the stands, escorted him into the president's office, and asked him what he planned to do with his windfall. (The fan who caught Barry Bonds's 715th home run ball sold it on Ebay for $220,100. And Mark McGwire's record-breaking 70th home run ball sold for $3 million in 2006. Nice timing, too — in 2010, McGwire admitted using steroids while he played, and that ball's estimated value dropped faster than a pop fly!)

Lopez showed a bit of class that some would say is surprising from a Yankees fan. He passed on the chance to auction the ball, which some experts estimate would have fetched as much as $250,000. Then he told reporters he thought the ball belonged to Jeter and gave it back to the legendary slugger. But he still walked off

, , ,

The Tax Man and the "Electric Amish"

, , ,

We've talked before about how the internet is changing so much of how we live our lives. The internet is changing how we shop, how we book travel, and even how some of us find romance.

It's no surprise, then, that the internet is changing how we file and pay our taxes. Just 10 years ago, online filing was a novelty. Now it's become the norm. Last year, two out of three Americans e-filed their income tax returns. Those who also opted for electronically deposited refunds saved the government mailing costs, saved themselves a trip to the bank, and even got their refunds a week faster than waiting for paper checks.